The credit rating of Rosseti Siberia, PJSC (hereinafter, Rosseti Siberia or the Company) is based on the Company’s strong position in its regions of presence, strong operating profile, as well as the good assessments of business profitability and liquidity. The rating is constrained by the medium business size indicator, medium leverage, low coverage, and weak cash flow. The rating is supported by the high likelihood of the Company receiving extraordinary support from “ROSSETI”, PJSC (ACRA rating: AAA(RU), outlook Stable; hereinafter, the Holding or the Supporting Entity).
Rosseti Siberia is an interregional electric grid organization operating in the Altai Republic, Republic of Buryatia, Republic of Khakassia, Altai Krai, Zabaikalsky Krai, Krasnoyarsk Krai, Kemerovo Region–Kuzbass, and the Omsk Region.
KEY ASSESSMENT FACTORS
High probability of extraordinary support from the Supporting Entity. Rosseti Siberia is a natural monopoly and the backbone electric grid company of Siberia, providing electricity transmission throughout the Siberian and Far Eastern Federal Districts in eight regions of the Russian Federation, representing approximately 10.5% of the country’s territory. The Company is integrated into the Holding’s structure, including a unified treasury system and mechanisms for operational liquidity support for subsidiaries, ensuring stability and flexibility in financial resource management. The Company has previously received and continues to receive financial support from the Holding, including loans and subsidies from the federal budget. Considering the above, as well as the Holding’s history of supporting other subsidiaries and dependent companies, there is a high probability that the Company will receive financial assistance if necessary.
Infrastructure monopoly with low sales risk. Rosseti Siberia holds a leading position in the electricity transmission services market within its service area. Based on an assessment of existing tariff and balance decisions, the Company’s market share of tariff revenue is approximately 70% in its area of presence. The Company has been awarded the status of a systemically important territorial grid organization for 2025–2029 in all regions of presence. The Company facilitates the operation of industry, represented by the largest enterprises in the ferrous and non-ferrous metallurgy, heavy and precision engineering, mining, and transportation sectors. The level of overdue accounts receivable at the end of 2024 amounted to 1.8% of revenues.
Strong operational profile. The level of economic development of the Company’s regions of presence creates conditions for the formation of electricity tariffs that ensure sufficient profitability for the Company’s business to cover operating and capital costs. At the same time, ACRA notes the presence of regulatory risks caused by the potential influence of sociopolitical factors on tariff decisions. According to the Agency’s calculations, the current level of tariffs provides the Company with a balanced FFO margin before net interest payments and taxes (20%), while the weighted average FFO margin before net interest payments and taxes in 2025–2027 will remain at a similar level, growing insignificantly due to the tariff component.
The Company’s fixed assets have moderate wear and tear. The Company’s weighted investment expenditures amount to 13% of revenues. Investments are mainly directed toward ensuring the high quality and reliability of electricity supply, as well as prompt technological connection to electricity grids.
ACRA assesses the Company’s corporate governance as adequate and in line with industry standards. The presence of independent directors in the board of directors helps the board pass balanced managerial decisions. The Company’s risk management system minimizes all the main types of risks. The Holding’s oversight includes approval of key standardized internal regulatory documents and monitoring of their compliance by the Company’s management. The Company’s financial transparency is assessed as high.
Medium leverage and low coverage. As of September 18, 2025, the Company’s debt portfolio stood at RUB 48 bln. Debt is denominated entirely in rubles and is 74.5% made up of floating rate loans tied to the Bank of Russia’s key rate. According to the Agency’s estimates, the weighted average ratio of total debt (including lease and pension liabilities) to FFO before net interest payments for 2025 to 2027 will be around 3.1x (3.6x in 2024), which is largely due to growth of FFO before net interest payments.
The interest payment coverage indicator (ratio of FFO before net interest payments to interest payments) was 1.8x in 2024 (2.4x in 2023). The Agency expects the weighted average indicator to be 1.9x in 2025–2027.
The good liquidity assessment is based on a sufficient volume of funds in the Company’s accounts and deposits, as well as the volume of available credit lines that exceeds the size of the Company’s total debt.
Weak free cash flow (FCF). According to the Agency’s calculations, in 2023 and 2024, the Company’s FCF was negative (RUB -2.2 bln and RUB -4.6 bln, respectively), while in 2022 it was positive (RUB 2.3 bln). ACRA projects that FCF will remain negative in 2025–2026, including due to an assumed significant volume of capital expenditures, and then later turn positive.
KEY ASSUMPTIONS
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The Company carrying out its capital investment plan as per the announced targets;
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ACRA’s forecast includes no dividend payments in 2025–2028.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
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Lower regulatory risks due to implementing long-term and transparent tariff regulation principles, as well as a significant decline in the volume of the investment program and lower wear and tear of fixed assets;
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Leverage falling below 2.0x coupled with coverage exceeding 2.5x;
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FFO margin before net interest payments and taxes growing above 25% coupled with simultaneous growth of the FCF margin above 3%.
A negative rating action may be prompted by:
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The Supporting Entity losing control over the Company or potentially providing less support;
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FFO margin before net interest payments and taxes falling below 15% and the FCF margin going below -5%;
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Leverage exceeding 6.0x;
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Coverage falling below 1.0x.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): а.
Support: group.
ISSUE RATINGS
No outstanding issues have been rated.
regulatory disclosure
The credit rating has been assigned to Rosseti Siberia, PJSC based on the following methodologies: the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of Rosseti Siberia, PJSC under the national scale for the Russian Federation, Methodology for Assigning Credit Ratings with External Support to determine factors of external influence, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions. The principles of the following methodologies were also applied: the Methodology for Assigning Credit Ratings to Regions and Municipal Entities under the National Scale for the Russian Federation to assess the economic development of the regions of presence of the rated entity.
A credit rating of Rosseti Siberia, PJSC assigned under the national scale for the Russian Federation has been published for the first time.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on data provided by Rosseti Siberia, PJSC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of Rosseti Siberia, PJSC as of December 31, 2024.
The credit rating is solicited and Rosseti Siberia, PJSC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to Rosseti Siberia, PJSC during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
